Laws of the People's Republic of China

1. All town administrative agencies, enterprises and institutions (hereinafter referred to as payer units) under the jurisdiction of this Municipality shall, in accordance with the relevant provisions of the Plan of Shanghai Municipality for the Implementation of Reform of Endowment Insurance System for Town Employees approved by the Standing Committee of the Shanghai Municipal People's Congress, timely complete the procedures of registration for endowment insurance and pay endowment insurance premiums in full and on time.

2. The municipal labor and social security administrative departments shall take charge of the comprehensive administration, supervision and examination of the collection of the endowment insurance premiums in this Municipality. And the social security agencies shall be responsible for the routine collection of endowment insurance premiums. The supervisory organs of the labor and social security administrative departments shall supervise and examine the collection of endowment insurance premiums, and mete out the administrative punishment as authorized by these Provisions.

3. The payer units shall submit themselves to the supervision and examination conducted by the supervisory organs of the labor and social security administrative departments under the law and provide true and correct data on employment, payroll and financial statements; they shall not refuse supervision and inspection, withhold the truth or give false data. The supervisory organs of the labor and social security administrative departments shall keep business secrets for the payer units.

4. If any payer unit fails to complete the registration formalities of the endowment insurance as stipulated, the supervisory organs of the labor and social security administrative departments shall enjoin it to go through the formalities of registration within a prescribed time limit and to pay retroactively the endowment insurance premium due plus an overdue fine, and may penalize the legal representative of the unit or the responsible person by imposing a fine of 2,000 yuan to 20,000 yuan.

5. If any payer unit fails to pay endowment insurance premium in full and on time, the supervisory organs of the labor and social security administrative departments shall enjoin it to make up the arrears in endowment insurance premium within a prescribed time limit, and pay an overdue fine, and may impose a fine of 2,000 yuan to 20,000 yuan on the legal representative of the unit or the responsible person.

In case a payer unit transfers or hides its funds or other assets during the period in which it is enjoined to make up overdue premium or fails to make the payment within the prescribed time limit, the supervisory organs of the labor and social security administrative departments may apply to the people's court for enforcement.

6. When a payer unit is really unable to pay endowment insurance premium in full and on time owing to its business conditions or other causes, it shall apply to the municipal labor and social security administrative departments for postponement of the payment by presenting financial statements and other certificates, a payment plan worked out by the unit together with the institution having the power to dispose its property, and the unit's property rights certificates that have been assessed and put on file at the relevant administrative departments of property rights certificates. The relevant administrative departments of property rights certificates shall attend to such matters in a timely manner. The payer unit may postpone the payment upon approval by the municipal labor and social security administrative departments. The moratorium is 1 year at the most.

During the moratorium, the payer unit shall not transfer its assets that have been put on file for the record.

In case the payer unit still fails to make full payment of the endowment insurance premium on time according to the payment plan on the expiration of the moratorium or transfers its assets that have been put on file for the record during the moratorium, the municipal labor and social security administrative departments may make a decision to apply to the people's court for enforcement.

7. If the payer unit refuses to accept as final the specific administrative act of the municipal labor and social security administrative departments and their supervisory organs, it may apply for review within 15 days in accordance with the provisions of the Regulations on Administrative Review. If the payer unit refuses to accept as final the reviewed decision, it may institute legal proceedings at the people's court within 15 days upon receiving the notice of administrative review.

In case the payer unit does not apply for review of the specific administrative act within the prescribed time limit or institute legal proceedings or comply with the administrative decision, the labor and social security administrative departments and their supervisory organs may apply to the people's court for enforcement.

8. The labor and social security administrative departments and their supervisory organs shall be liable for compensation if they make improper administrative decisions or cause financial losses to the payer unit because of disclosure of its business secrets. The compensation shall not be entered as expenditure in the endowment insurance fund.

In case a person working in a social security agency deliberately does not collect endowment insurance premiums, or collects less than stipulated, or fails to collect premiums, or diverts endowment insurance premiums for other purposes, resulting in the loss of endowment insurance premiums, the social security agency shall recover the lost premiums in full and impose administrative punishment on the person concerned. If the case is serious enough to constitute a crime, the person concerned shall be prosecuted for criminal liabilities.

9. These Provisions shall become effective on October 1, 1998. The Procedures of Shanghai Municipality on Endowment Insurance for Town Employees promulgated by the Shanghai Municipal People's Government shall be revised according to these Provisions.